Sociedad Agricola e Industrial San Carlos S.A.

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The project entails: (i) boosting the existing cogeneration plant’s rated capacity to approximately 50 megawatts (MW); (ii) providing for the electrification of certain sugar production processes, such as grinding machines and turbine generators; and (iii) providing necessary infrastructure, including that used in the transport of bagasse as well as the requisite steam, water, and electrical systems. The estimated cost of the project is US$49 million. The IIC financing would consist of a loan of up to US$8 million.This renewable energy project, fueled by sugarcane bagasse, would benefit from laws and regulations enacted by Ecuador’s government aimed at encouraging private-sector investment in clean energy generation. The project would not only result in significant advantages for SAISC, in terms of savings and income diversification not tied to the price of sugar, but also benefit Ecuador’s electric power sector. Once the project enters the operational phase, SAISC estimates it will be in a position to generate and sell as much as 130 million kilowatt hours of energy annually to third parties.Founded in 1937, SAISC is an integrated sugar producer. It has a cogeneration plant and also produces and sells molasses and alcohol. SAISC controls approximately a third of Ecuador’s sugar market.This would be the IIC’s second operation with SAISC. In 2010, the IIC approved and disbursed a loan of US$7 million to the company, which SAISC used to invest in fixed assets aimed at improving the efficiency of its processes and maintaining competitive production costs.